06-18-18 AgendaCALL TO ORDER
City of Atlantic Beach
Agenda
Commission Workshop
Monday, June 18, 2018 - 6:00 p.m.
Commission Chamber
City Hall, 800 Seminole Road
Page
1 TOPICS
A. Commission priorities review
B. Direction on LEED City program
C. City Attorney budget 3-26
Authority and Accountability for Oversight of All Extraordinary Legal Expenses
Legal Fee Review Letter
2 PUBLIC COMMENT
3 ADJOURNMENT
Please Note: This meeting will be live -streamed and videotaped and can be accessed by clicking on the
Meeting Video tab located on the home page of the City's website at www.coab.us.
Any person wishing to speak to the City Commission on any matter at this meeting should submit a
request to the City Clerk. For your convenience, forms for this purpose are available at the entrance to
the Commission Chamber.
In accordance with the Americans with Disabilities Act and Section 286.26, Florida Statutes, persons
with disabilities needing special accommodation to participate in this meeting should contact the City
Clerk's Office by 5:00 PM, the Friday prior to the meeting.
Page 1 of 26
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
COMMISSIONER'S REPORT
AGENDA ITEM: Authority and Accountability for Oversight of All Extraordinary
Legal Expenses
SUBMITTED BY: John M. Stinson, Commissioner, Seat No. 2
REPORT DATE: 281h of May 2018
BACKGROUND: In March 2015, the City Commission approved a contract for
legal services with Lewis, Longman and Walker to retain Ms.
Brenna Durden as legal counsel and City Attorney for the City
of Atlantic Beach.
In September 2017, the City Commission approved the FY
2017 - 2018 Operating Budget for the City of Atlantic Beach,
Florida.
Legal fees and expenses appropriated in the budget for FY
2017 -2018 are two hundred -fifty thousand ($250,000.00)
dollars. Included in this appropriation was an amount for Legal
Fees for Extraordinary Items of ninety-five thousand
($95,000.00) dollars. These extraordinary items include, but
were not limited to, matters such as gas / service station code
updates, medical marijuana dispensary considerations, and
sign code revisions.
There may be other historical information not presented in
this chronology and not available at the time of the drafting of
this report.
JUSTIFICATION: City Attorney reports detailing legal fees and a breakdown by
department for services rendered, estimate expenses incurred
to approach one hundred twenty-one thousand, three hundred
fifty-five dollars ($121,355.00) dollars for the first six months
of the fiscal year. An annualized forecast of this estimate from
the City Attorney would forecast legal fees at year-end to be
approximately two hundred forty-two thousand, seven
hundred ten ($242,710.00) dollars.
Agenda Item #1C.
18 Jun 2018
Page 3 of 26
Agenda Item #1C.
18 Jun 2018
City Finance Director reports detailing legal fees estimate
expenses incurred to approach one hundred forty-one
thousand, five hundred fifteen ($141,515.00) dollars for the
first seven months of the fiscal year. An annualized forecast of
this estimate would forecast legal fees at year-end to be
approximately two hundred forty-two thousand, five hundred
ninety-seven ($242,597.00) dollars.
Both forecasts predict expenses to be within budgetary
projections, one projection seeming more advantageous than
the other.
What is notable about these recent years legal expenses
incurred is the average legal expenses incurred from 2008
through 2015 is ninety-eight thousand, eight hundred twenty-
six ($98,826.00) dollars and the average from 2016 through
the projected legal expense incurred in FY 2017 - 2018 is two
hundred fifty-three thousand, eighty-nine ($253,089.00)
dollars.
While there are reasonable explanations for these increases,
due to the significance of these increases, it would be prudent
for the City Commission to direct closer scrutiny by City staff of
any and all future legal expenses expected to be incurred.
BUDGET: Budgetary impact is expected to be negligible to non-existent
with the upside being a closer focus on legal demands may well
result in budgetary savings.
RECOMMENDATION: It is recommended that the City Commission charge the City
Manager with Authority and Accountability for Oversight of All
Extraordinary Legal Expenses Not Specifically Expressed or
Enumerated within the Contract engaging Lewis, Longman &
Walker and Ms. Brenna Durden as legal counsel and City
Attorney for the City of Atlantic Beach.
ATTACHMENTS:
1. Unexecuted Contract for Legal Services dated the 14th of
March 2016 (note: the actual contract was executed,
however an executed copy of said contract was not
available to include in this packet)
2. City of Atlantic Beach Budgetary Summary of
Expenditures by Department for FY 2017 -2018
3. City Administration Budgetary Combined Summary of
Revenues & Expenses for FY 2017 - 2018
Page 4 of 26
Agenda Item #1C.
18 Jun 2018
4. City of Atlantic Beach Budget Presentation from the 1211,
of July 2017
5. City of Atlantic Beach Budget Reserve Reconciliation for
F'Y2017-2018
6. Lewis, Longman & Walker Estimated Breakdown of
Fees by Department Through April 2018 for Services
Rendered for FY 2017 - 2018
7. City of Atlantic Beach Legal Fee Breakdown from CoAB
Finance Department for FY 2017 -2018
8. City of Atlantic Beach, City Manager Organizational
Chart
9. City of Atlantic Beach, City Manager Key Objectives
10. City of Atlantic Beach, City Attorney Key Objectives
11. City of Atlantic Beach, CityAdministration Legal
Counsel Budget and Historical Expense
PRESENTATIONS: Done at this time.
APPROVAL:
Approved by:
John M. Stinson, City Commission, Seat No. 2
1
Page 5 of 26
Agenda Item #1C.
18 Jun 2018
AMENDED AGENDA ITEM OA
March 14, 2016
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM-. Recruitment of City AttorneV
SUBMITTED BY: Catherine Berry, J.D., Director of Human Resources
DATE: March 14, 2016
STRATEGIC PLAN: None
BACKGROUND: In a special called meeting on March 8, the Commission voted tq
direct the City Manager to negotiate a contract with the firm of Lewis, Longman and Walker,
P,A., which he has done. The contract, a copy of which Is attached, provides for compensation
in a hybrid format as follows: Lewis, Longman and Walker will attend All City Commission
meetings, Special Called Commission Meetings, Code Enforcement Meetings and Community
Development Board meetings and prepare for such meetings, for a monthly retainer of $4500,
which is $225/hour, for up to 20 hours. All other services are "non-retalner services" and shall
be billed at an hourly rate of $250 an hour in time Increments of .10 hours, Paralegal time shall
be billed at $150 an hour and an associate's time will be billed at $200 an hour. Litigation
services in Federal or State Court, if any are requested, shall be billed at $250 an hour.
Lobbying, pension and public finance/bond services shall be provided, upon request, at
negotiated rates. Preapproved out-of-pocket costs will be reimbursed. Travel time or mileage
in Duval County will not be charged and outside of Duval County will be billed at one half (1/2)
the agreed hourly rate. LLW will be responsible for advising the City Manager when fees and
costs reach $7,000a month. Compensation maybe negotiated on an annual basis.
RECOMMENDATION: The City Manager be directed to enter into the attached contract
with Lewis, Longman and Walker, P.A. on behalf of the City.
ATTACHMENTS: Contract for Legal Services
BUDGET: $96,000 currently budgeted for legal services
REVIEWED BY CITY MANAGER:. Y
Page 6 of 26
Agenda Item #1C.
181 u n 2018
AMENDET) AGENDAITEM N3A
March 14, 2016
CONTRACT FOR LEGAL SERVICES
THIS CONTRACT FOR LEGAL SERVICES, hereinafter referred to as the "Agreement," is
made and entered to be effective this 16th day of March, 2016, by and between the City of Atlantic
Beach, Florida, hereinafter referred to as the "City" and Lewis, Longman & Walker, P.A., hereinafter
referred to as "LLW."
Recitals
A. The City is a political subdivision of the State of Florida, and maintains its principal place of
operations at the City of Atlantic Beach City Hall, 800 Seminole Road, Atlantic Beach, Florida
32233.
B. LLW is a Professional Association organized and existing under the laws of the State of Florida,
and has its local place of business and office at 245 Riverside Avenue, Suite 150, Jacksonville, FL,
32202.
C. LLW was the successful responder to RFP #16-02, issued by the City of Atlantic Beach on January 26,
2016.
D. Pursuant to the terms of the RFP, the parties Have negotiated the terms and conditions contained in this
agreement.
THEREFORE, in consideration of the premises and mutual covenants expressed herein and
pursuant to the RFP response submitted by LLW, and for other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged by the parties, the parties agree as follows:
1. Recitals
The recitals outlined above are true and correct and are incorporated into and made apart of this
Agreement.
2. Incorporate by Reference
The parties hereby incorporate by reference into this Agreement the City's needs and requirements
detailed in RFP #2016-02, as well as LLW's response to the RFP, considered by the City Commission.
Further, LLW agrees to perform any and all services pursuant to this Agreement in a professional
manner consistent with and as presented in LLW's response to RFP #2016-02.
3. Position
The City hereby engages LLW to serve as and to perform the duties and responsibilitigs of :City
Attorney pursuant to the Charter of the City of Atlantic Beach• and the general laws of the State
of Florida. LLW designates and the City accepts Brenna M. Durden, Esq. as the primary attorney
for City legal work. Brenna Durden may utilize the services of other attorneys and staff in LLW
as she deems appropriate for City legal work. Any attorney designated in Brenna Durden'g
absence shall meet the minimum requirements outlined in RFP #2016-02.
Page 7 of 26
Agenda Item #1C.
18 Jun 2018
AMENDED AGENDA HEM OA
March 14, 2016
4. Services to be Performed
A. General. LLW shall serve as the City Attorney, who shall act as legal advisor to, and
Attorney and counselor for, the City and all of its officers in matters relating to and within
the scope of their official duties. All of the resources of LLW will be available to support
that role. Specifically, Brenna Durden, Esq. will have the assistance, when necessary, of other
members of LLW, secretarial staff, paralegals, law research and technical support. It is
expected that Brenna Durden, Esq. or her designate will provide such duties :required
pursuant to the Charter of the City of Atlantic Beach and the general laws of the State of
Florida.
B. Legal Services: The legal services to be provided on a recurring basis may include but will
not be limited to the following:
1. To perform the duties and responsibilities pursuant to the Charter of the City of Atlantic
Beach and the general laws of the State of Florida.
2. Advise, research, assist and render written opinion, when requested, to the City on a. wide
variety of legal areas including but not limited to: general municipal law, labor 1,aw, general,
state and federal laws relating to municipal government, intergovernmental relations and rules
and regulations.
3. Legal advisor and counselor for all departments and all of its officers in matters relating to
their official duties.
4. Prepare, review, or advise on all contracts, bonds, and all other legal and official instruments
in which the Municipality is concerned and shall endorse on each his approval of the form and
correctness.
5. Review all agenda items.
6. Advise, research and assist the City on a wide variety of legal areas including b -qt not limited
to: grants, budgets, bonds, user fees, impact fees, franchise fees, property taxes, special
assessments, public disclosure issues, and laws against discrimination.
7. Advise, research and assist the City on a wide variety of legal areas including but not limited
to: housing, subdivision and land use law, comprehensive planning, zoning regulations and
property rights, eminent domain, economic development activities, public utilities, code
enforcement, building codes, real estate law, annexations.
8. Advise, research and assist the City on a wide variety of legal areas including but not limited
to: contract law, environmental law, franchise law, municipal leases, purchasing and
procurement.
9. Advise, research and assist the City on a wide variety of legal areas including -but not limited
to: personnel matters including collective bargaining, union negotiations, arbitration,
employee grievances, including advice on the creation of policies and procedures.
10. Advise, research and assist the City on a wide variety of legal areas including but not limited
to: criminal prosecution, litigation and trial activity, tort law and proactive methods to avoid
litigation.
11. Code Enforcement Board attorney.
12. Prosecute and defend on behalf of the City all complaints, suits and controversies in which the
City is a party except where the City's defense is provided either by contract or law by a third
ply.
13. FmTjsh the City Commission, the City Manager and the head of any department, his -opinion
on any question of law relating to any matter concerning their respective power and duties.
Page 8 of 26
Agenda Item #1C.
18 Jun 2018
AMENDED AGENDATrEM#3A
March 14,2016
14. Advise the City Commission as to their compliance or non-compliance with the provisions of
the Charter and Florida Statutes.
15. Attend all meetings of the City Commission, either in person or by his duly desiggated
representative to supply those legal services as may be needed during the meeting.
16. Provide Counsel and legal services for City boards, task forces and committees duly
authorized by City Commission.
17. Assist the City in preparation, drafting, revisions of codes, ordinances, resolutions,
amendments, leases, policy and procedural manuals, and other documents at the request of the
City Commission and/or City Manager.
18. Assist, revise, review and/or advise with acquisition requirements with appropriate
departments, evaluate any special legal or cost problems, develop acquisitibri timetables,
make preliminary cost estimates and obtain or develop proper legal descriptions of real estate
transactions. Prepare documents necessary for routine land purchases and/of sales. All such
transactions shall be deemed to be routine unless the Attorney contacts the City in advance
and obtains the City's approval that the transaction contemplated is non -routine.
19. Submit, as part of the annual budget process, anticipated expenditures, and revenues'.
20. Provide monthly report to City Manager summarizing legal services activities.
21. Provide all required documentation to the external auditor as part of annual audit.
22. Coordinate and supervise specialized legal services provided by outside counsel.
23. Keep the City Commission, City Manager, and City Clerk informed of legislationor judicial
opinions that have potential impact to the City.
24. Meet with City Manager and/or designee on an as needed basis to provide for the operational
necessity of the City.
25. Assist in preparation, drafting, revisions of contracts, amendments to the contracts and other
legal documents at the request of the commission and/or City Manager.
26. Advise City Commission, City Manager and City Clerk at least once a year on Sunshine Law
and public records law, home rule, legislative and quasi-judicial bodies; and all other areas of
municipal law, legislative and judicial opinions that could potentially impact the City.
27. Perform any other duties as assigned by the City Charter, or as directed by the City
Commission:
Compensation. The City shall pay LLW the following compensation for the various types !of
legal services provided by LLW:
Brenna Durden, Esq. (or her designee when she has an unavoidable scheduling conflict)will
attend All Regular City Commission meetings, Special Called Commission Meetings, Code
Enforcement Board Meetings and Community Development Board Meetings and prepare for
such meetings, up to twenty (20) hours per month for a monthly retainer of $4,500 ($22$/hour).
7f more than twenty (20) hours in any given month is required to provide these services, then
LLW shall bill an hourly rate of $250 for anytime over twenty (20) hours. All other services are
"non -retainer services" and shall be billed at an hourly rate of $250 in time increments of .10
hours. Paralegal time shall be billed at $150 an hour and associate time will be billed at'$200 an
hour. Litigation services in Federal court, State court or administrative hearings,:or
anticipation of litigation, if any are requested, shall be billed at $250 an hour. Lobbying;_ pension
and public finance/bond services shall be provided, upon request, at negotiated rates.
Page 9 of 26
Agenda Item #1C.
18 Jun 2018
AMENDED AGENDAITEM93A
March 14,i2016
i
Costs; Preapproved out-of-pocket costs incurred by LLW, such as for courier fees, couit reporter
fees, etc., will be reimbursed to LLW within 30 days of City's receipt of an invoice. W6st1aw is
only charged if necessary to reimburse for costs incurred outside the regular plan with prior
approval of the City. Per diem travel will only be charged if pre -approved by the City Manager.
LLW shall not charge for secretarial services. Travel time or mileage to and fro M, all City
functions located inside Duval County will not be charged. Travel time and costs to functions
located outside Duval County will be billed in accordance with Chapter 112, Florida Statutes,
and at one half (1/2) the agreed hourly rate.
LLW will be responsible for advising the City Manager when fees and costs reach $7,000 a
month.
Compensation may be renegotiated on an annual basis. i
6. Billing
i
LLW will submit an itemized statement to the City for each month for Legal ;cervices ands
payment shall be due upon receipt.
7. Controlling Law
This Agreement and the validity, execution, construction, interpretation, performanceand
enforcement thereof shall be governed by the substantive and procedural laws of the State of
Florida. Venue shall be in Duval County.
S. Termination
Either party may terminate this agreement without cause at any time. The City will be obligated to pay
LLW for all work completed as of that date. LLW will be obligated to continue represeintation!in, and
be compensated at the applicable rate, for all critical matters until new representation can be found, to
provide the City with all documentation and files relating to matters of the City and all 6f its other
obligations under the Rules Regulating the Florida Bar.
9. Severability i
The invalidity or partial ingalidity of any portion of this Agreement will not affect Me validity of
any other provision. In the event that any provision of this Agreement is held to be !valid,: the
remaining provisions shall be deemed to be in full force and effect as if they had been executed by
both parties subsequent to the expungement or judicial modification of the invalidpxo�vision
.`
10. Integration
The Agreement sets forth and establishes the entire understanding between the CityandLLW
relating to the engagement of LLW by the City. Any prior discussions or representations by or
between the parties are merged into and rendered null and void by the Agreement. No
amendment or modification of this Agreement shall be valid or effective unless it is in writing' and
properly executed by all parties thereto.
Page 10 of 26
Agenda Item #1C.
18 Jun 2018
AMENDED AGE1VDA ITEM 03A
March 14, 2016
11. Notice
I.
Any notice required or permitted under this Agreement shall be sent by certified mall to (a) the
City at its principal place of operations and (b) to LLW` at its local place of business and office.
12. Conflicts of Interest
During the term of this Agreement, Brenna Darden, Esq. and members of LLW shall observe the
requirements regarding conflicts of interest as set forth in the Rules Regulating the Florida Bar and its
Rules of Professional Conduct.
13. Attorneys Fees
In any litigation, lawsuit, legal or other proceeding's brought in connection with the construction,
interpretation, meaning, validity, performance or enforcement of this Agreement, the prevailing
party shall be entitled to receive all of its costs and reasonable attorney's fees from the othez party.
i
14. Annual Evaluation
The City Commission may conduct an annual evaluation of the performance of LLW.
i
15. Files
All files generated as a result of this Contract are the property of the City of Atlantic Beach and
shall be tamed over promptly upon request after resolution of all compensation issues:
During resolution of compensation issues, the City shall be provided liberal access to its filed in order
to protect -its legal interests. During the course of representation, and continuing during cusitody of
the City's files, LLW will comply with GS 1 -SL and the Florida Bar's record retention
requirements, and will comply with Chapter 119, Florida Statutes.
IN WITNESS WHEREOF, the parties executed this Agreement in Duval County, Florida, to be
made and entered into the day and year first written above.
• i
CITY OF ATLANTIC BEACH,
a Florida municipality.
By:
Nelson Van Liere, City Manager
LEWIS LONGMAN & WALKER, P.A.
By;
BrennaDurden, Esq., Shareholder
Page 11 of 26
City of Atlantic Beach
Summary of Expenditures by Division
General Fund
18
Agenda Item #1C.
18 Jun 2018
Page 12 of 26
Actual
Actual
Estimate
Budget
Increase
2014.2016
2015.2016
2016 2017
2017.2618
Owasso
City Administration
City Commisslon
38,708
39,951
41,630
47,760
6,130
City Manager
235,093
243,675
318,674
3071943
69,269
City Clark
253,095
263,460
281,271
320,306
99,034
Finance and Administration
838,441
884,840
862,111
930,734
68,623
Information Technology
766,063
777,644
717,634
771,460
53,626
Human Resources
199,795
213,385
211,942
226,545
16,603
Legal Counsel
96,150
235,824
233,135
260,000
18,865
Total
2,421;346
2,668,777
2,856,397
2 936 747
270,360
Planning and Zoning
146,633
237,488
129,824
328,716
196,899
General Government
492,042
1;006,760
490,026
845,007
356,382
Police Department
Administration
572,488
666,692
469,495
818,076
348,581
Patrol
2,406,853
2,766,434
2,633,850
2,810,013
174,163
Detective
322,262
324,090
198,284
401,046
201,612
Dispatch
274,603
303,382
289,469
358,664
751706
Animal Control
90,822
74,055
100,065
92,747
(7,633)
School Crossing Guards
9,850
10,017
. 10,052
10,680
626
Total
3,676,878
4,137,871
3,703,205
4,491,418
793,067
Piro
Fire Control / Rescue
1,680,045
1,111,107
1,143,011
1,262,802
119,791
Lifeguards
231,426
211,607
239,787
262,086
22,299
Total
1,318,471
1,322,614
1,382;798
1.624,089
142,090
Code Enforcement
50,204
44,372
66,128 E
76,862
9,429
Pubilc Works
Administration
441;985
459,898
4531714
431,754
(21,960)
Fleet Maintenance
231,642
234,030
280,900
284,218
3,318
Streets and Road Maintenance
664,037
763,096
975 6,_62
1,150,734
176,072
1,357,664
1,457;023
1,710,276
11866,706
166,430
Parks and Rooreation
Admin(strtrailonand Activities
343,677
666,160
403,238
509,071
10.5,833
Beautification
21176
23,721
8,750
58,262
49,512
Maintenance
819,214
768,660
869,025
837,370
(31,655)
Total
1.106,067
1,369,541
1,281.013
1,404,703
1236690
Grand Total
1br
12,226,421
11,4
13�47�2.,134
2,047,319.
18
Agenda Item #1C.
18 Jun 2018
Page 12 of 26
City Administration
Combined Summary of Revenues and Expenses
Actual
Actual
Estimate
Budget
Increase
2014.2016
2016-2016
2016.2017
2017-2018
(Decreasai
Revenues:
39..034
City Manager
24093
243,675
General Fund Resources 2,382,636
2,618,827
2,624,767
2,888,987
264,220
Total Revenues 2,382,6382,618,8272,624
862,111
,767
2,888,987
284,220
Expenses:
2016.2017
2611.2018
City Clerk
253,p95
263,460
281,271
320,305
39..034
City Manager
24093
243,675
318,674
387,943
69,269
Finance and Accounting
832441
884,840
862,111
930,734
68,623
Information Technology
766,063
777,644
717,634
771,460
$3,826
Human Resources
199,795
213,365
211,942
228,645
18,603
Legal Counsel
96,150
235,824
233,135
.250,000
•16,865
Total Expenses
2;382,638
2,618,827
2,624,767
2,888,987
264,220
POrchasing Agent
1.00
Resource Allocation:
Wilily Billing Supervisor
1100
1.00
Utility Specialist
1,00
Personal Services
1,603,625
1,703,677
1,638,558
1,919,160
280,602
operating Expenses
692,676
819,267
899,209
848,827
(50,382)
Capitaloutlay
'186,337
95,982
87,000
121,000
34,000
Transfers
Computer Network and PCI$erver Teehnlcian
2.00
2.00
3.00
Total Resource Allocation:
2,382;638
2,618.111
2,824,787
_ 2,888,987
1.00
Summary of Authorized Positions
2016.2017
2611.2018
City Clerk
City Clerk
1.00
1,00
Adminisirative Assistant
1.00
1.00
Retards Clerk
1.00
1.00
3.00
3.00
CityManager
City Manager
1.00
1.00
Deputy City Manager
0.00
1.00
Administrative Assistant
0.00
1.00
Customer Service Specialist
1.00
1.00
2.00
4,00
Finance
Finance Director
1.00
1.00
Deputy Finance Director
1.00
1.00
Accountant
1.00
0.00
POrchasing Agent
1.00
1.00
Wilily Billing Supervisor
1100
1.00
Utility Specialist
1,00
1.00
Accounts Payable Clerk
1.00
1.00
Customer Service Super,
1.00
1.00
Customer Service Rep,
2.00
2,00
10.00
9.00
Information -Technology
Computer Network Director
1100
1.00
Computer Network and PCI$erver Teehnlcian
2.00
2.00
3.00
3.00
Human Resources
Human Resources Director
1.00
1.00
Human Resources Assistant
1.00
1.00
2.00
2.00
Legal Counsel
City Attorney
1.00
1.00
Total21.00
22.00
Agenda Item #1C.
18 Jun 2018
Page 13 of 26
Miscellaneous Items
Ilealth Insurance included Is available for all full
time employees. This budget Includes an estimated
ro96rate Increase. We also can servatively assume any
vacant positions will request 010 Coverage although
there Is varying levels of participation due to turnover,
2017 Budget 5 987,410
2o18 Budget -of B6.t51
Increase $98,711
Percentage Increase fo°/v
--Follow up Topics to Discuss
Millage Rate and budgeting policies
General Liability
Gencro1 Liability -The Insurance costars allocated based
on the policy to the varlous deppartments depending on the
coverage of the policy. Thenlicles includeAulo, General
Liability, Publlc 011lcialanmployee Liablllty,
Environmental, Fiduciary and Police Statutory and
Liability. The City also budgets fora broker's service to
assist In keeping adequate coverage,
2017 Budget $370,967
x018 Budget S n
• Increase oho% $37,a84
Percent Increase of ro°h
Agenda Item #1C.
18 Jun 2018
7/12/2017
3
Page 14 of 26
Adminlstrative Budget
'
General Fund
Major Items Included
=7
ems
• Cleric
City Clerk
S317X5
S376,61g
• Contractual Services(Minutes)S19,8zo
City Manager
253,905
389,$95
° Finance &Administration
Finance
= PinanceandAceounting
992,557
7,
937,899
+Audit - slo,000additionalauditserviccstoassessriskof
separatinnofdutiesfenuory2o17-Aprllaol7
and ccounti
Informagy
G ,55
7 9 9
$ 51 435
N InformationTeclutology
Human Resources
217,935
x35,614
. Will discuss 7/19117
Legal Counsel
155.000
215,noo
4 Human Resources
Total
S455i631
$2,999,467.
• Employee Assistance Program and training -s5,oao
y Legal Services- 5175,000
Miscellaneous Items
Ilealth Insurance included Is available for all full
time employees. This budget Includes an estimated
ro96rate Increase. We also can servatively assume any
vacant positions will request 010 Coverage although
there Is varying levels of participation due to turnover,
2017 Budget 5 987,410
2o18 Budget -of B6.t51
Increase $98,711
Percentage Increase fo°/v
--Follow up Topics to Discuss
Millage Rate and budgeting policies
General Liability
Gencro1 Liability -The Insurance costars allocated based
on the policy to the varlous deppartments depending on the
coverage of the policy. Thenlicles includeAulo, General
Liability, Publlc 011lcialanmployee Liablllty,
Environmental, Fiduciary and Police Statutory and
Liability. The City also budgets fora broker's service to
assist In keeping adequate coverage,
2017 Budget $370,967
x018 Budget S n
• Increase oho% $37,a84
Percent Increase of ro°h
Agenda Item #1C.
18 Jun 2018
7/12/2017
3
Page 14 of 26
Agenda Item #1C.
18 Jun 2018
Page 15 of 26
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Page 15 of 26
ESTIMATED BREAKDOWN OF FEES BY DEPARTMENT
!
THROUGH APRIL 2018 FOR SERVICES RENDERED
SINCE OCTOBER 112017
City Attorney General Representation
Fee Amount
Community Development
35%
Commission
25%
Code Enforcement
15%
Building Department
5%
Public Works/Public Utilities
5%
City Clerk
5%
City Manager
5%
Human Resources
2%
Finance Department
2%
Police Department
1%
$
86,500.00
All other matters
Community Development
59%
Gate
$
1,400.00
Selva Preserve
$
8,100:00 j
Flynn (50%)
$
3,025.00
Mayport Road
$
3,375.00
Sign Code
$
75.00
Land Development Regulations
$
750.00
Appeals
$
3,525.00
Comprehensive Plan
$
225.00
Commission
12%
Election matters
$
4,195.00
Code Enforcement
10%
Cloister
$
50.00
Seafood Kitchen
$
3,585.00
Public Works
9%
Flynn (50%)
$
3,025.00
Finance
6%
DMS Appeal
$
2,175.00
Litigation/HR
4%
Harkelroad
$
125.00
Shaw
$
1.225.00
Subtotal—Alt other
matters
$ 34,855.00
TOTAL FEES—All matters
$121,355.00
Estimate of Department Percentage for all matters through April 2018
I
Community Development
42%
Commission
21%
Code Enforcement
14%
Public Works/Public Utilities
6%
Building Department
3.5%
City Clerk
3.5%
City Manager
3.5%
Finance
3%
Human Resources
1.5%
Litigation/HR
1%
Police Department
1%
00959430-1
Agenda Item #1C.
18 Jun 2018
Page 16 of 26
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Agenda Item #1C.
18 Jun 2018
Page 17 of 26
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Agenda Item #1C.
18 Jun 2018
Page 17 of 26
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Agenda Item #1C.
18 Jun 2018
Page 17 of 26
CITY OF ATLANTIC BEACH
Organizational Charts
CITY MANAGER
City Manager
Deputy City Executive
Manager Assistant
Receptionist
d Public Recreation I Finance Public Planning & ii� Building Human
Safet j & IT Works ,zoning I Resources
Y Activities
4
Agenda Item #1C.
18 Jun 2018
Page 18 of 26
City Manager
Purpose:
To administer and enforce the en actments of the City Comm ission; to assis t
Commission in making policy and program decisions; and, to otherw ise administer
affairs of the City. The key component of administration of the city is the preparation
delivery of the Annual Operating Budget.
Key Objectives:
® Prepare a long-range financial plan
® To assist the Commission annually to establish a Strategic Plan and then to supervise tl
accomplishment of established priorities
® Continuously examine and monitor city departments to ensure that the City is operating
an effective and productive manner
® Provide the Commission with adequate, pertinent and clear information to allow them
make prudent decisions
® Ensure that the handling of citizen corn plaints is done in an efficient, tim ely a
professional manner
® Communicate with citizens and the press to maintain an open and responsive atmosphe
necessary in a democratic government
a Carry out the goals, objectives and policies established by the City Commission
Issues, Trends and Highlights:
In an effort to f ill the need f or improved citizen engagement and outreach, th e
Manager's Office has added two positions in fiscal year 2018.
• Deputy City Manager and Receptionist
Agenda Item #1C.
18 Jun 2018
Page 19 of 26
Legal Counsel i
i
Purpose:
The purpose of this program is to provide legal services, including ordinance
interpretation, legal opinion, negotiation, litigation, etc., requested by the City
Commission, City Manager or City staff.
Key Objectives:
The City Attorney is appointed by the City Commission and acts as the legal advisor i
the municipality and all of its officers in matters relating to their official duties, T
attorney prepares contracts, bonds, and other instruments in which the City is concern
and endorses on each his approval of the form and correctness thereof. When required
do so by the City Commission, prosecutes and defends, for and on behalf of the Cr
complaints, suits and proceedings in which the City is a party. The attorney furnishes t
City Commissioners, City Manager or department heads of the City an opinion on a:.
question of law relating to their respective powers and duties,
Agenda Item #1C.
18 Jun 2018
Page 20 of 26
, I
- i
i
City Administration
Legal Counsel
PERSONNEL SERVCES
Wages
Salaries and Wages
Overtime
Special Pay
Sub -Total
Benefits
FICA
Pension
Health and Life Insurance
Worker and Unemploy Comp
Sub -Total
Total Wages and Benefits
OPERATING EXPENSES
Professional Services
Contract Services
Local Travel
Communications
Postage
Utilities
Rentals and Leases
Insurance
Repairs and Maintenance
Printing and Publishing
Advertising and Promotions
Other Current Charges
Office Supplies
Operating Supplies
Books, Training, Memberships
Internal Service Charges
Total Operating Expenses
CAPITAL OUTLAY
Land
Buildings
Infrastructure Improvements
Vehicles
Equipment
Total Capital Outlay
DEBT SERVICE
Principal
Interest
Other
Total Debt Service
TRANSFERS
To
To
Total Transfers
DIVISION TOTALS
Actual Actual Estimate Budget Increase i
2014.2015 2016.2016 2016.2017 2017-2018 (Decrease) .�
96,150 235,421 233,135 250,000 16,666 .111
402
96,150 235,824 233,136 260,000 :16,866 jl
i
,I
I
i
t
96,160 236,824 233,136 250,000 ; 16,665
Agenda Item #1C.
18 Jun 2018
Page 21 of 26
Page 22 of 26
Commissioner John M Stinson
City of Atlantic Beach, Florida
800 Seminole Road
Atlantic Beach, FL 32233
15th of June 2018
The Honorable Mayor Glasser, the Honorable Commissioner Kelly, the Honorable
Commissioner Norris, the Honorable Commissioner Waters, City Manager Mr. Joe
Gerrity, City Clerk Ms. Donna Bartle and City Attorney Ms. Brenna Durden
City of Atlantic Beach, Florida
800 Seminole Road
Atlantic Beach, Florida 32233
RE: Legal Fee Review and Future Management of Legal Expenses
To The Honorable Mayor Glasser, the Honorable Commissioner Kelly, the Honorable
Commissioner Norris, the Honorable Commissioner Waters, City Manager Mr. Joe
Gerrity, City Clerk Ms. Donna Bartle and City Attorney Ms. Brenna Durden:
I want to thank each of you for considering my recommendation to discuss legal fees
incurred by the City of Atlantic Beach and how these expenses might be better
managed moving forward. And I apologize for my absence, but my travel had been
planned long in advance. I have full faith and confidence in each of you to
collectively determine a path forward.
I would like to be clear in stating that in no way am I seeking to affect any change in
legal representation. For those of you who know me and have watched my actions in
the past, you must surely know, that if I sought such a change, I would be at the
forefront of such an effort, as I do not back away from making those hard choices. I
believe Ms. Durden has provided the City with outstanding service and has worked
as directed by the City Commission on all matters given to her.
The motivation for my Recommendation to the Commission is very clear. Legal
expenses over the past several years have outpaced what the City historically has
incurred. As stated in that recommendation, there is reasonable justification for
those increases. But as the Commission, charged first and foremost in our Charter
Agenda Item #1C.
18 Jun 2018
Page 23 of 26
15th of June 2018
Page 2
and our duties with ensuring good fiduciary oversight, I feel we must complete a
detailed review of why those expenses were incurred and how to manage them in
the future. And it will take each of us, focused on managing these expenses, to
succeed in the effort.
My personal belief is the City needs to develop more detailed budgeting practices
related to this particular expenditure category. Currently the City financials do not
report legal fees in great detail, malting it next to impossible to determine where
these expenses originate.
First, I believe each elected official should have an individual annual budget for legal
expenses. In the past I have observed on more than one occasion, legal fees being
incurred at the request of one or perhaps a minority of elected officials without
official sanction or consent of the majority of the Commission. The purpose of this
line item would be to educate each of the elected officials as to how they individually
might be affecting the finances of the City. Yes, some elected officials might incur
more than budgeted, but some would incur less. Without this data, none of us truly
understand or are aware of the costs we cause the City to incur in our roles as an
elected official.
Second, I believe the City Clerk should have direct access to the City Attorney. One
only has to think about an election year, and the probable needs the City Clerk might
have a reason or reasons to consult with the City Attorney. The City Clerk should
also have a annual budget for legal fees. Consultations about meeting postings,
ethics training, election law changes and numerous other matters could arise
necessitating the City Clerk contacting the City Attorney. And as one of three direct
reports of the Commission, the City Clerk would be charged with managing her legal
budget.
Third, I believe each and every department within the City needs to prepare,
monitor and be accountable for a legal budget. Some departments incur significant
legal expenses and yet are revenue -generating departments. Without more detailed
budgeting, it is difficult for City staff in these departments to know if any fees
charged are adequate or excessive, appropriate or necessary or how each of these
departments may contribute to the finances of the City. While it may be easier to
book all legal fees to City Administration, in my opinion, doing so does not
contribute to all City employees understanding the financial impact they may have.
Agenda Item #1C.
18 Jun 2018
Page 24 of 26
15th of June 2018
Page 3
Nor does such ease of booking contribute to all staff members focusing on
controlling such costs.
As I tried to communicate to each of you in my Recommendation to the Commission
related to legal expenses, we should not forget, other than legal fees incurred as a
result of elected official or City Clerk actions, the City Manager has oversight,
authority and accountability for all costs incurred and the effect such costs have on
the City Manager's budget. The budget prepared by City staff forecasts future legal
expenses, as determined by the City Manager and his staff. And in that light, the City
Attorney is essentially support staff to the City Manager in all matters the City
Manager feels legal counsel is necessary.
Fourth, the City Attorney needs more clear direction from the City Commission on
her role in managing legal fees. Upon retaining Ms. Durden, the City had an
expectation that there were a certain number of hours Ms. Durden's services would
be needed. The subsequent contract was designed to cover those needs and to
adequately compensate her firm for her work. A review of those needs now, would
be in order. The Commission has changed, City management and staff has stabilized,
and our needs because of the quality of the staff the City has today most likely make
demands for Ms. Durden's services less. Ms. Durden has a better understanding of
the meetings she is expected to attend, the departments that may need more
guidance or less, and should have a wealth of experience in City matters that would
allow her to assist in controlling legal expenses. The retainer paid to Ms. Durden's
firm may need revision, but I believe the City and the City Commission should
determine a monthly retainer amount that would also be used as a budget line item
for managing legal fees. This retainer should cover routine, customary and normal
day-to-day expenses. Such detailed budgeting as proposed would also give the City
Attorney data needed to self -manage monthly routine expenses.
Finally, I believe the City needs to affect a paradigm shift in how we consider
extraordinary expenses. Examples of such extraordinary expenses would be matters
such as service station Code revisions, medical marijuana, sign Code revisions, land
acquisitions, independent outside counsel retention, human resource matters, etc.
These types of expenses are often non-recurring, and many times difficult to foresee
and forecast or budget. Expenses of this nature should be viewed more like a capital
project in theory. For example, the City has an ongoing repaving project and
schedule. Yet, when the City considers a streetscape project, the paving that might
be included in the project isn't billed to the repaving budget account. It is billed to
Agenda Item #1C.
18 Jun 2018
Page 25 of 26
15th of June 2018
Page 4
the streetscape project. Why would the City not handle extraordinary legal expenses
in much the same manner? If we did, the residents and taxpayers would better
understand why legal expenses might be incurred and that those expenses aren't
just for routine and customary business. I believe the City should adopt a policy of
accepting an engagement letter for extraordinary legal matters from Ms. Durden
and Lewis, Longman and Walker (or any other outside counsel utilized) that
includes projected costs and timing. Much like I would do with my personal
accountant or attorney when I have need for these services. The engagement letter
should be presented to the Commission for ratification, including public input. Then
a budget line item would be added to track expenses related to whatever priority
has arisen. As a result, everyone would have adequate knowledge and
understanding of any extraordinary expense incurred.
With adoption of these recommendations, we would now have everyone who might
have any impact on legal expenses, focused on managing and minimizing those very
fees. And the clarity for the public would enable understanding and be educational.
This is purely and simply "cost center" accounting, very common in the world of
accounting and commonly utilized by businesses and governments in a multitude of
environments.
Again, I would like to thank you all for considering my recommendations. Good luck
in your discussions. I also wish to thank each of you for your efforts to make our
home a better place.
Sincerely,
,5�, M - 9,,r,
Commissioner John M Stinson
Agenda Item #1C.
18 Jun 2018
Page 26 of 26